Loan given in cash

This query is : Resolved

RITESH SHAH (Querist)
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21 July 2009 Whether Loans given in cash above Rs.20,000/- to farmers by money lender who is holding licence under money lending act can be allowed under Income Tax Act 1961.

CA.Varun Ranjan

CA.Varun Ranjan (Expert)
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21 July 2009 yes as per Rule 6DD , moreever its a capital nature as well

saurabh

saurabh (Expert)
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21 July 2009 agree with the expert Mr Varun

RITESH SHAH

RITESH SHAH (Querist)
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22 July 2009 Thank you

Hey

please clerify whether Section 269SS/269T or any other section as per Income Tax Act, shall be applicable for such cash payment.

Abhishek Mohta

Abhishek Mohta (Expert)
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22 July 2009 Section 269SS deals with the cases where the assessee has received loan in cash for more than Rs. 20,000/-.

269T deals with the cases where the loans taken by the assessee has been repaid by him in cash for more than Rs. 20,000/-.

Thus in this case neither of the section will be applicable.